Couriers have never been busier. It is a boom time for the industry, with big players, such as DHL, TNT and Hermes working with dozens of smaller firms and self-employed contractors, plus hundreds of smaller courier businesses competing to deliver goods from online retailers to customers.

Now is a great time to be a courier, whether you just want to earn a little extra money using your own vehicle, or your firm has decades of experience, and you need extra drivers to handle the surge in new business you are fulfilling.

The wide range of goods being transported using couriers is staggering. With everything from books and clothes, to groceries, flowers and emergency medical supplies, we have seen every type of product passing through the hands of couriers over the last few years. Consequently, we know that getting the most appropriate cover for your business needs can be tricky. You don’t want to end up paying for cover you don’t need, and, at the same time, you don’t want to avoid getting the cover that you legally need, or that would have protected the goods in transit – whether you are transporting goods using a car, van or motorcycle.

Courier insurance is designed to protect the driver, the vehicle, other road users and, depending on the type of insurance, the goods in transit.

Understanding the complexities of getting the right cover isn’t easy, which is why we have put together this Ultimate Guide to Courier Insurance.

In this Guide, we explain the types of courier insurance available; whether you – or your drivers – need self-employed or employee-based insurance; what influences the cost of insurance; how to reduce the cost of insurance; and what additional cover you might need, such as public liability, goods in transit and fleet insurance.

We have everything covered, and our expert team can give you a quote online or over the phone, which means you can get on with ensuring parcels are delivered on time for your customers without worrying about your insurance policies.

Section 1:

Types of Courier Insurance

Courier companies come in all shapes and sizes.

From self-employed, one man (or woman) operations – which might only involve working for another firm for a few hours a week – through to mid to large companies, comprising dozens of vehicles and drivers. And then, of course, the hybrid business, a courier company that primarily employs self-employed drivers – either with their own vehicles (private cars, vans or motorbikes) – or who use company vehicles.

We are seeing more of every type of courier business.

When it comes to vehicles, motorcycles are more common in large cities, where they are delivering everything from confidential documents between law firms to takeaway food. Whereas in suburbs and small towns, there are more vans and self-employed persons using their own cars to deliver goods on a part-time or casual basis.

The courier industry is governed by consumer demand, which increasingly depends on the online buying habits and subscription patterns of e-commerce retailers, such as ASOS and Boohoo, and service startups, such as UberEATS and Deliveroo.

Getting the right cover is critical for every courier business. Here are the main options, regardless of the vehicle you are using and goods you are transporting:

First things first, you need to make sure the vehicle you use – or fleet you operate – is fully protected. You need real value for money, with most couriers opting for insurance that covers them for every eventuality, including no claims discount and comprehensive cover. However, as is the case with all vehicle insurance, you also have the option to select third party only, or third party fire & theft policies.

The cover you get also depends on the vehicle and any other uses, which means policies for vans and motorcycles that are only used to transport goods are different from policies for cars that are also personal vehicles.

Most basic policies only cover the transportation of parcels, newspapers and small packages, since there are limitations on what can be carried and the value of the goods being shipped. Therefore, it is always worth asking what can be carried and the value limit of goods in transit.

Worried you will be transporting more expensive items, or goods not usually covered such as food, livestock, liquids, hazardous materials, perishables? Give us a call on 0800 440 2180, or provide that information when asking for a quote and we can see if we can help you get the right type of cover for the products you are carrying.

Any company with more than one employee needs to ensure they have employers’ liability insurance, with a minimum of £5 million in cover. Alongside this, we offer Courier Liability Insurance, which as an employer, protects you and staff in the instance that something happens to a member of the public, their property, or your staff whilst they are working as a courier.

Public liability insurance is a must-have for self-employed couriers who won’t necessarily have employers liability insurance, which includes protecting you in the event of any accidental damage in public spaces and when delivering goods to homes and businesses.

All couriers are recommended to take out public liability insurance because if you are on the road making deliveries, then you will undoubtedly encounter members of the public. This insurance covers you if you were to harm a member of the public – or their property – as a result of your work, and they were to make a claim against you.

With this Guide, we provide more information, so you can decide the most suitable cover for your courier business, which includes everything from self-employed to courier fleet insurance.

Carole Nash Insurance Consultants Ltd is regulated by the Ministry of Justice in respect of regulated claims management activities; its registration is recorded on the website www.claimsregulation.gov.uk.

Online sales and quotation service is currently only available to UK mainland customers. Calls may be recorded for training and monitoring purposes.